FDR: good news travels fastAll types of good news. Yes, those drill results were strong. A mouth-watering new zone, Lower Antino, has declared itself. And we did just see our best ever one-day absolute stock price gain. (On the way to a new ATH on big confirming volume, and lots of good forum chatter.) But does anyone else feel a little something extra in the air these last 36 hours?
Proof of our third gold zone could not have arrived at a better time. One of the few broad risks to FDR I’ve mentioned a few times is the geopolitical situation. And I’ll admit I was not expecting a boring, smooth transfer of power in the United States. To put it mildly. But now, from early indications, it sounds like that is exactly what we will be getting in January.
This has massive positive implications for the US stock markets, but also for businesses around the globe. I never did anticipate any serious trouble for Founders from exploring in a South American jurisdiction (though other prospective shareholders might have had their worries). Now I can further reduce those already small concerns.
If the world overall has less uncertainty and more stability, it behooves heads of state, big and small, to act in stable, predictable manners. Because such good behavior will accrue without fail the dividends of respectability, prosperity and peace. Unfortunately, an every-man-for-himself policy does sometimes pay. As the brilliant and benevolent Doug Casey has long argued. But now is not one of those times. Nor is the foreseeable future.
And what of the direct impacts on the USA? Lower capital gains rates? Lower taxes in general? Less regulation? A serious attempt to balance their massive government budget for the first time in a generation? And what if that attempt succeeds?
Plus - a new frontier (finally!) for the first time in 200 years? On Mars? And/or the mining/settling of the Asteroid Belt? All now within our grasp as a spacefaring species.
These are all net positives for anyone trying to make a speculative profit. Or an *investment* profit, for that matter.
Does all this mean a lower gold price? Maybe, though I could make the opposite case too. Such as if the Fed at long last gets dissolved by a gold-bug activist member of the new administration.
But who cares whether gold prices fall? FDR never needed $2,800 per ounce to draw quality suitors. I suspect the gold major who buys us will have modelled an Antino open pit at a 10-year average gold price. So, something around $1,800 maybe? We’ve got lots of cushion left before that assumption could be eroded.
In case today wasn’t already good enough for Founders, we had another Eric Coffin interview of our CEO, containing, among other gems, the reminder that the news flow is getting faster from here on in. Meanwhile, tonight seems like Christmas Eve again, as the four-year-old in me can’t wait to see how tomorrow’s FDR market opens.